Yahoo Finance Etsy (ETSY) Stock Sinks As Market Gains: What You Should Know
Etsy (ETSY) closed at $104.43 in the latest trading session, marking a -0.3% move from the prior day. This change lagged the S&P 500's daily gain of 1.76%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 3.03%.
Coming into today, shares of the online crafts marketplace had lost 26.37% in the past month. In that same time, the Computer and Technology sector lost 3.3%, while the S&P 500 lost 5.94%.
Investors will be hoping for strength from Etsy as it approaches its next earnings release. The company is expected to report EPS of $0.54, down 10% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $626.72 million, up 8.19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.62 per share and revenue of $2.76 billion, which would represent changes of -3.68% and +7.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Etsy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.96% lower within the past month. Etsy currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Etsy is holding a Forward P/E ratio of 40.04. Its industry sports an average Forward P/E of 24.07, so we one might conclude that Etsy is trading at a premium comparatively.
It is also worth noting that ETSY currently has a PEG ratio of 5.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ETSY's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
